North American LNG-Related Projects Valued at Over $25 Billion Scheduled for Construction in 2007 and Beyond

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Researched by Industrial Info Resources (Sugar Land, Texas). Presently, there are six operational onshore LNG receiving and regasification terminals in operation in North America with a combined regasification and send out capacity of 4.73 Bcf/d. One LNG terminal was recently completed in Mexico by Shell and there are four operational LNG terminals located in the U.S. and one in Puerto Rico. If the four operational LNG terminals in the U.S. utilized their entire daily regasification capacity on a daily averaged basis, this would represent approximately 6% of the total average natural gas demand of the U.S.

Click on the image at right to view a chart showing the breakdown of LNG related project spending by market region.

There are four new LNG terminals currently under construction in North America. Three of these terminals are located on the U.S. Gulf Coast and one is located on the Atlantic Coast of Canada. These three projects have a combined capital value of $2.92 billion and a total regasification capacity of approximately 6.6 Bcf/d.

Numerous companies are planning to expand this source of natural gas from its current 6% to as high as 15 to 20% by the middle of the next decade. These companies are planning a total of 78 major LNG-related projects spread across all of North America with a combined capital expenditure value of $25 billion. The $25 billion will be divided between LNG terminal construction and pipeline infrastructure on a seven to one ration, capital wise. Approximately $23 billion is slated for 45 new LNG terminals and existing LNG terminal expansions projects, and the remaining $2.8 billion is slated for 33 planned pipelines totaling 2,172 miles at approximately $1.3 million per mile to deliver the imported natural gas into the existing pipeline grid.

The U.S. is home to the majority of the LNG-related project proposals with a total of 63 followed by Canada with eight and Mexico with seven proposed projects. Of the 45 LNG terminal projects planned in North America, 37 projects valued at $19 billion are within the U.S. borders, and four are planned for both Mexico, valued at $1.7 billion, and Canada valued at $1.7 billion.

Not all of these LNG-related projects will be constructed. In the best of circumstances a further six to twelve new LNG receiving and regasification terminals will be constructed over the next five to seven years. After that round of construction is complete, any new construction in the LNG sector in North America will be limited to expansions at existing terminals. This represents a total of $6.4 to $10 billion still to be spent on LNG terminal construction over the next five to seven years. This dollar figure does not include the related infrastructure, such as the pipelines that will be needed to make interconnections with the existing pipeline grid or several natural gas-fired power plants and cogeneration plants that are being planned in conjunction with the LNG terminal proposals.

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